Clariant and India Glycols partner to tap into green renewables megatrend
The two chemical makers have established a joint venture in renewable ethylene oxide derivatives.
Swiss-based specialty chemical maker Clariant is partnering with green technology-based chemicals supplier India Glycols Ltd. (IGL) to establish a 51-49 per cent joint venture in renewable ethylene oxide (EO) derivatives.
By combining production and distribution capacity, Clariant officials said in a March 11 news release, thejoint venture is expected to become a leading supplier of renewable materials to the rapidly growing consumer care market in India and neighboring countries, while providing Clariant the ability to leverage the EO derivatives globally across the home care, personal care and industrial applications segments of its industrial and consumer specialties business.
“This opportunity to partner with IGL…enhances the capacity of our industrial and consumer specialties business in India and beyond, whereas the access to renewable ethylene oxide broadens our global offering to customers,” said Clariant CEO Conrad Keijzer.
Under the terms of the proposed agreement, IGL will contribute its renewable Bio-EO derivative business to the joint venture, which includes a multipurpose production facility including an alkoxylation plant located in Kashipur, India. In return, Clariant will contribute its local industrial and consumer specialties business in India, Sri Lanka, Bangladesh, and Nepal, held by Clariant India Ltd., as well as a net cash payment to attain a 51 per cent stake.
The joint venture will market Clariant’s entire range of industrial and consumer specialties products in the previously mentioned countries, Clariant said, while all other global markets shall be served by Clariant. “To support production, India Glycols has agreed to a long-term supply agreement for ethylene oxide made from bio-ethanol as well as further utilities,” Clariant said. “At its inception, the joint venture will have approximately 200 employees.”